KARACHI: The national energy icon Pakistan State Oil (PSO), continued to dominate the industry while maintaining steady performance in the first half of FY24.
The company announced a net profit of Rs 7.7 billion, translating into earnings per share of Rs 16.51 and gross sales of Rs 1.9 trillion for the period under review.
The company’s Board of Management (BoM) reviewed the group’s performance for the half year ended December 31, 2023 in the meeting held on February 15, 2024.
The group posted a net profit of Rs 12.2 billion for the period, translating into earnings per share of Rs 26.01.
Amidst soaring inflation, stagnant growth and geopolitical tension, the petroleum sector witnessed a downturn in product demand. PSO adeptly maneuvered through the obstacles and ensured uninterrupted nationwide fuel supply.
PSO bolstered its market share in white oil with a notable 1.9 percent increase, reaching 52.6 percent by the end of the period. This growth was primarily attributed to increase in gasoline sales, where the company augmented its market share by 3 percent, reaching 46.1 percent for 1HFY24.
The company maintained the lions share in the diesel market with a share of 55.3 percent. Continuing to dominate the black oil market, PSO sold 153,000MT during the period despite a 57.4 percent decline in sales of the segment on YoY basis owing to low furnace oil-based power generation.
The company further strengthened its infrastructure for enhanced capacity and reliability with the completion of 91,000 MT of new storages at Faqirabad, Faisalabad, and Mehmoodkot, hence solidifying its position as the OMC with the largest storage capacity in the country, totaling 1232000 MT.
The company also successfully rehabilitated 24,000 MT of storage facilities at Sihala and Zulfiqarabad, complemented by ongoing efforts to enhance capacity by 23,000 MT across terminals including ZOT, Habibabad, Sihala, and Mehmoodkot.
Enhancing accessibility, PSO increased its retail presence by adding 21 new outlets, taking the total nationwide footprint to 3,547. Marking a significant leap forward in operational precision through digitalization, precise meter filling and invoicing system was effectively deployed for retail customers at Keamari Terminal A (Karachi).
PSO takes pride in its prominent presence in the aviation sector, exemplified by the recent addition of Quetta Airport to its portfolio. PSO also took charge of the Operations and Management responsibilities for Sukkur and Nawabshah Airports, further amplifying its jet fuel operations to encompass an impressive total of 14 airports nationwide.
Embedded in PSO’s core values of caring and giving, the company continued to build upon impactful contributions through its CSR Trust with ongoing support in 1HFY24 exceeding Rs 127 million to numerous charitable organizations focused primarily on healthcare, education, youth development, social enterprise advancement, and poverty alleviation.
In light of the challenges posed by escalating trade receivables, heightened borrowing expenses, and mounting finance costs, PSO’s Board is diligently engaged in constructive dialogue with the relevant authorities to mitigate these concerns.
PSO is unwavering in its dedication to keep the wheels of the nation’s economy in motion by actively undertaking digitization and automation, process optimisation, bolstering operational reliability and capacity, enriching customer experience through value-added services, and generating shareholder value through its strategic long-term projects and plans.
The management expresses sincere gratitude to all stakeholders including the Board of Management, the Government of Pakistan, Ministry of Energy (Petroleum Division), shareholders and employees for their continued support and trust.
Copyright Business Recorder, 2024
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